Is Bitcoin on the cusp of a major price breakout? If so, might Bitcoin be worth $20,000 by the end of August?
In January this year, Bitpay Chief Commercial Officer Vinny Singh, announced that he believes Bitcoin will retest an all-time price high of $20,000 in 2020. A short while later, Wall Street billionaire Michael Novogratz came out in support of Singh’s prediction.
Are Singh and Novogratz right? Is Bitcoin about to breakout? Here, we’ll attempt to look at the genuine merits of each prediction.
Will Bitcoin be Worth $20,000 at Some Point This Year?
One thing that stands out about Vinny Singh’s $20,000 Bitcoin price prediction, is its timing.
Speaking in January, Singh didn’t pin all his hopes for a $20,000 Bitcoin on the then-upcoming Bitcoin halving. Instead, Singh suggested that a major price rally this year would be the result of “an unforeseen event.”
Now in July 2020, it is clear that the Covid-19 crisis fits Singh’s description of an unforeseen event exactly. Now that this event has manifest, we also have more evidence that Bitcoin might be on the cusp of a major rally.
- In June, Bloomberg published its own prediction that Bitcoin will climb to as high as $20,000 to $28,000 in 2020.
- Bloomberg believes that a rally is imminent, as a result of worldwide government quantitative easing in response to Covid-19.
- Bloomberg believes that Bitcoin halving and increasing institutional interest in Bitcoin will also help drive prices higher.
Will Bitcoin be Worth $20,000 by the End of August?
At present, the idea is trending on social media that Bitcoin might reach $20,000 in value by as early as August. However, while the future does look bright for Bitcoin, retesting $20,000 by August seems unlikely.
- Bitcoin’s downward trend throughout June correlates (like in March this year) to downward trends on the stock market.
- Many investors are dumping stocks, due to fears of a second wave of Covid-19.
- As Bitcoin’s price performance is mirroring the stock market and S&P500, some suspect that a BTC price crash might be imminent.
Because a Bitcoin crash does look imminent, it is unlikely that Bitcoin will retest $20,000 as early as August. However, this is not to say that Bitcoin won’t recover quickly afterward.
Is Now a Good Time to Invest In Bitcoin
Will Bitcoin be worth $20,000 by the end of August? Likely, the answer to this question is a simple no. However, even if Bitcoin does crash following a second wave of Covid-19, it is likely that coin prices will recover quickly as they did earlier in March this year.
It is also worth noting that in spite of this analysis, Pantera Capital CEO Dan Morehead, believes that there is a 50% chance Bitcoin will reach $115,000 in value by mid-2021.
This is an opinion by the author and not meant to be investment advice
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